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What is a Low Ball Offer?

In general, a lowball offer is an offer to purchase that is much lower than the seller’s asking price. For example….

There are other factors that can deem an offer to be a lowball offer, another factor is Current Market Value. Is the property value aligned with the list price?

Let’s say that the seller is asking $75,000 for her property, and the comparable homes in the area are selling for $125,000.

The home has everything that you wished for, your family loves it, you’re fully pre-approved, there are no other offers on the home, and the home doesn’t need any work.

You decide to offer $65,000. That’s a lowball offer because although you offer $10,000 less than what the seller is asking, you’re also offering $60,000 less than the value of a home that is perfect for you. There are many buyers who will offer more. The seller may not negotiate.

We’re not saying that lowball offers should never be offered, however, we are saying that buyers should be very strategic with their offers.

The way to strategically make offers is to consider the following…

1) Does the property have everything that I need?

2) Can I afford what the seller is asking?

3) What’s the difference between the asking price and

market value?

4) How long has the property been on the market?

5) What condition is the property in?

6) How many of my offers have been rejected?

7) How much longer do I want to continue looking for property?

These are just a few things to consider when making an offer, especially a lowball offer. At Cosmopolitan Real Estate Services we can help you strategically make offers that work for you.

Please schedule an appointment to speak with us and we’ll be happy to get you on the right track to home ownership.

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